DALLAS, Sept. 26, 2011 /PRNewswire/ -- Ashford
Hospitality Trust, Inc. (NYSE: AHT) today announced that it has
entered into a new $105 million
senior credit facility which replaces the Company's previous credit
line that was scheduled to mature in April
2012. The new credit facility provides for a
three-year revolving line of credit at 275 to 350 basis points over
LIBOR, which is the same as the Company's previous credit line.
There is a one-year extension option subject to the
satisfaction of certain conditions. The new credit facility
includes the opportunity to expand the borrowing capacity by up to
$45 million to an aggregate size of
$150 million. The financial
covenant tests with respect to fixed charge coverage ratio and
leverage tests are similar to the Company's previous credit line.
Since the Company had a zero balance on the previous credit
line, no cash was utilized to pay it down upon termination.
Also, the Company does not have any immediate intention to
draw down proceeds on the new credit facility.
"We are very pleased to be able to maintain our operational
flexibility given that our new credit facility has similarities to
our previous credit line," said Monty J.
Bennett, Chief Executive Officer of Ashford Hospitality
Trust. "We considered our improved cash position and future capital
needs to construct a new credit facility that enhances our ability
to execute our strategic growth plans. Additionally, we are
afforded greater financial and strategic freedom to utilize a full
range of alternatives to address upcoming debt maturities.
Lastly, we look forward to benefiting from the solid
relationship orientation of the lenders in our new credit
facility."
KeyBanc Capital Markets acted as the lead arranger and KeyBank
National Association as administrative agent with participating
lenders including: Morgan Stanley Bank, N.A., Credit Suisse AG, and
UBS Loan Finance LLC. The borrowings under the new credit
facility may be used for investment purposes, reduction of property
level debt, and other general corporate purposes.
Ashford is a self-administered real estate investment trust
focused on investing in the hospitality industry across all
segments and at all levels of the capital structure.
Additional information can be found on the Company's website
at www.ahtreit.com.
Certain statements and assumptions in this press release
contain or are based upon "forward-looking" information and are
being made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to risks and uncertainties.
When we use the words "will likely result," "may,"
"anticipate," "estimate," "should," "expect," "believe," "intend,"
or similar expressions, we intend to identify forward-looking
statements. Such forward-looking statements include, but are
not limited to, the timing for closing, the impact of the
transaction on our business and future financial condition, our
business and investment strategy, our understanding of our
competition and current market trends and opportunities and
projected capital expenditures. Such statements are subject
to numerous assumptions and uncertainties, many of which are
outside Ashford's control.
These forward-looking statements are subject to known and
unknown risks and uncertainties, which could cause actual results
to differ materially from those anticipated, including, without
limitation: general volatility of the capital markets and the
market price of our common stock; changes in our business or
investment strategy; availability, terms and deployment of capital;
availability of qualified personnel; changes in our industry and
the market in which we operate, interest rates or the general
economy; and the degree and nature of our competition. These
and other risk factors are more fully discussed in Ashford's
filings with the Securities and Exchange Commission.
The forward-looking statements included in this press release
are only made as of the date of this press release. Investors
should not place undue reliance on these forward-looking
statements. We are not obligated to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or circumstances, changes in
expectations or otherwise.
SOURCE Ashford Hospitality Trust, Inc.